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Re: clarity789 post# 40194

Monday, 04/16/2007 11:39:18 PM

Monday, April 16, 2007 11:39:18 PM

Post# of 56798
nice summary, but a little conservative. If you look at the eegi 10-q, their net earnings from storm depot is more typically around 41%, not 15%...they plan on having 12 stores operating, not 4, and a p/e of 4 seems a little on the low side, particularly in hurricane season.. but a nice "base projection" to start with..

"If we assume Storm Depot will have 4 locations producing 500k/qtr

(500,000 x 15%) = 75k/qtr = 300k/yr and (300k/yr x 4) = 1.2mil/yr

If we apply a P/E of 4 we get 4.8mill / 1,569,332,036 = .003

THEREFORE....

Projected PPS after the merge/swap is .0016 - .003"




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